Buh Bye to Fine Wine Deals Due to California Grape Shortage

As demand increases and inventories experience an extended shortage, consumers will have to choose between paying more, trading down or buying foreign imports, according to a wine industry report released on Tuesday.

Silicon Valley Bank, which provides the wine industry with commercial banking services, predicts the fine wine business will see sales growth of 7 to 11 percent this year amid a looming grape shortage.

“I think the consumer for the past five years has been used to getting really fine quality wines at a good price,” said Rob McMillan, founder of the bank’s wine division. “But as the balance evens out, you can’t expect the producer to sell at a loss, which is really what they were doing.”